Cross leaks in the circuit and low line pressure. If you trace the hydraulic path you will see it has a lot of potential bleed off areas. In the stock calibration only the inner portion of the direct piston is used to apply the clutch pack. It doesnt have a lot of surface area.
Forgot to mention that i first removed governer when i got the trans to verify if it was correct. I just hand tightened the bolts that hold the plate for the governer and to top it off i now remember that the gasket got destroyed when i first removed it.I put it all back togheter and forgot i had removed the governer and destryed the gasket.Slapped it in the car like that,would this have cause a poor 1-2 shift and no other shifts after that? im in the process of replaceing the gasket and trying it again to see if it is works a little better.